Yahoo Blamed Microsoft For Revenues Falls

Due to factors such as a deal with Microsoft and executive shuffles, Yahoo’s earnings fell in the second quarter.

From quarter in 2010, the revenue drops 5%, resulting in $1.08 billion. The amount is less than analysts’ prediction, $1.11 billion. The shortfall was blamed on a search-and revenue-sharing agreement with Microsoft. Yahoo did a 10-year deal with Microsoft in 2009 that makes Bing the search engine for all Yahoo sites. Meanwhile, net earnings for the quarter were up to 11%, to $237 million.

Although display advertising is getting more popular, Yahoo’s business is not as good as its rivals like Google and Facebook. Google posted revenues of $9 billion in its second quarter, which is a 32% jump over Q2 2010, and a net income of $2.5 billion. Google had surpassed Yahoo in search ad revenues years ago.

CEO Carol Bartz said the factor is ” comprehensive changes we have made in our sales organization to position ourselves for more rapid display growth in the future.”


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